Under the efficient-market hypothesis, it is advisable to spend at least an hour a day altering your portfolio to take advantage of profit opportunities.

When correcting for an externality, command-and-control policies are always preferable to market-based policies

a. True b. False Indicate whether the statement is true or false

Suppose that a bank has $500 million in asset X, $400 million in asset Y, and $200 million in asset Z. Each asset has a different risk weight. The risk weight for asset X is 40%, the risk weight for asset Y is 70%, and asset Z has zero risk. The amount of risk-weighted assets for this bank is ____________ million. Assuming that the bank has to hold capital equal to 8% of its risk-weighted assets,

the bank must hold _____________ million in capital. A) $480; $38.4 B) $1,100; $88 C) $1,100; $880 D) $340; $27.2